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Calculate the pre-determined overhead rate for department

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Reference no: EM132594326

Question 1: The following budgeted data is available for an accounting period: Department A Manufacturing overhead R112 000 Direct labour cost R121 000 Direct labour hours 40 200 Machine hours 40 000. Department B Manufacturing overhead R85 000 Direct labour cost R100 000 Direct labour hours 28 400 Machine hours 28 000. Department A uses machine hours as a base to apply overheads and Department B uses direct labour cost. Calculate the pre-determined overhead rate for Department A. Round to two decimal places.

Option A. R1.12

Option B. R3.03

Option C. R2.80

Option D. R2.79

Reference no: EM132594326

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